South Korea’s Samsung Electronics is set to strengthen its role in Tesla AI chip production after Tesla ended its Dojo supercomputer project. This shift follows Tesla’s decision to focus entirely on developing its AI5 and AI6 processors, designed to power self-driving technology and AI workloads. The move signals a deeper reliance on external partners for advanced chip manufacturing. Industry analysts believe this could mark a turning point in Tesla’s AI hardware strategy.
Samsung recently secured a $16.5 billion contract to manufacture Tesla’s next-generation AI6 chips at its Taylor, Texas, plant. The agreement will run until 2033 and may exceed the disclosed value, according to Tesla CEO Elon Musk. He mentioned that discussions with Samsung Electronics Chair Lee Jae-yong focused on shaping a long-term strategic partnership. This deal could significantly boost South Korea’s position in the global semiconductor market and further expand Tesla AI chip production capabilities.
Lee has extended his stay in the United States, sparking speculation about potential meetings with Tesla executives. Industry watchers believe the two companies may explore deeper collaboration beyond manufacturing. Foundries like Samsung are now partnering with clients on both manufacturing and design, enabling highly integrated product development. This trend is reshaping the traditional boundaries between chip design firms and their production partners, especially in Tesla AI chip production projects.
Tesla initially launched the Dojo project to create its own D1 chip for AI training in autonomous driving and robotics. However, Musk decided that maintaining separate AI chip designs no longer made sense for efficiency. He emphasized the need to concentrate resources on the AI5 and AI6 processors to maximize performance and reduce duplication. This approach could allow Tesla to deliver AI capabilities more quickly to its vehicles and robots.
Bloomberg reported that engineers from the Dojo team have moved to other Tesla projects, including data center development. The company will now rely more heavily on external technology partners, including Nvidia and AMD, alongside Samsung for chip manufacturing. This strategic pivot could streamline development timelines and enhance product quality. It also reflects a broader industry trend of leveraging specialist suppliers for competitive advantage.
Industry experts believe Samsung’s extensive design capabilities position it well to contribute beyond chip production. The company’s experience in co-developing products with clients could lead to innovative solutions for Tesla’s future AI systems. As AI chip demand grows, this collaboration could help both companies maintain a technological edge. The partnership also strengthens South Korea’s influence in the automotive technology space.
Musk hinted at potential technology convergence between Tesla and its partners during a recent earnings call. He suggested that future chips, such as the AI6 inference model, might align closely with partner designs. This convergence could reduce costs and increase performance across Tesla’s AI systems. It may also open the door to broader industry partnerships in the coming years.
With both companies aiming to enhance self-driving technology, this partnership could play a key role in the global AI chip market. The growing reliance on Samsung highlights South Korea’s increasing influence in the semiconductor industry. Additionally, it underscores the strategic importance of building strong global technology alliances. For Tesla, it could mean faster innovation and more robust Tesla AI chip production capabilities.
